2008年1月16日星期三

Freehold versus leasehold

Attraction of property's tenure can take a back seat to location

By Maria Khong



Property purchasers like freehold ownership. But if the location is right, the freehold or leasehold tenure could take a back seat, except where the outstanding lease is too short for comfort.

A professional recently bought a leasehold condominium in Petaling Jaya, her decision influenced substantially by the prime location and that the property still has a lease of 96 years. But if asked to choose between a freehold unit in Rawang and a similar property with a 50-year lease in PJ, she would go for the former.

Preference for freehold property over leasehold is a foregone conclusion, developers, property consultants and real estate agents will testify. The attraction does not just lie with the no-limit right to use the property but it is also more 'bankable' than leasehold properties nearing the expiry of the lease.

Financial institutions' interest in a property declines correspondingly with the term of the unexpired lease. By the same token, the value of the property drops.

Reasons like the need for consent from the authorities to transfer ownership of leasehold properties and the possibility of expired lease replaced with a shorter renewed lease period offer little comfort for prospective buyers. Some puchasers have complained of horror experiences in obtaining consent for transfer of leasehold properties.

For these reasons, apple for apple, a freehold property will fetch more in the market. But by how much?

United Malayan Land (UM Land) Bhd general manager (marketing) Lau Boon Ann puts the price difference at 10 to 15 per cent for a 99-year leasehold property, about 20 per cent for a 60-year lease and 30 per cent for a 30-year lease.

Even with a 10 to 15 per cent difference between two similar properties within a locality, Lau is inclined to believe that people will go for a freehold unit. Things could be different if there is a bigger price difference.

The preference for freehold property is not unique to the Klang Valley.

Henry Butcher, Lim and Long (M) Sdn Bhd's Teoh Poh Huat finds that broadly in Penang, when similar properties are being compared, there is a greater reluctance for the market to respond favourably to leasehold properties.

The Penang-based consultant also points to the terms of unexpired lease and restrictions-in-interest that affect the value of properties. 'Consequently, a difference of 20 per cent to 30 per cent is not uncommon when similar properties save for its tenure are being compared,' he adds.

Apparently, three methods are used to discount the value for leasehold properties:

  • A comparison of similar properties, particularly those with similar land tenure (actual evidences) after making allowances for factors like location;
  • The mathematical method using the rate of return based on years' purchase; and
  • From experience and knowledge of transactions in the market.

Raine & Horne International Zaki + Partners Sdn Bhd's Bock Chek Hai offers a different perspective. Unless the remaining tenure period is very short, metropolitans are more concerned about location, price and size, he says.

He tells City & Country this is reflected in the values of freehold and leasehold properties in different locations. In the Klang Valley, it may vary from 10 to 15 per cent but 20 to 25 per cent in smaller towns is common, says Bock.

During the first seven months last year, 1-storey terraced freehold houses in Taman Desawan with lot sizes of 1,300 sq ft to 1,400 sq ft were priced between RM125,000 and RM150,000. Leasehold 1-storey terraced houses of similar dimensions at Taman Sri Andalas, with at least 90 years' unexpired term, were priced between RM130,000 and RM145,000. Both Taman Desawan and Taman Sri Andalas are located along the second milestone at Jalan Klang-Banting.
During the same period, 2-storey terraced houses in Taman Desawan were priced from RM175,000 to RM195,000 while leasehold houses of the same type and dimension in Taman Sri Andalas were going for between RM170,000 and RM180,000. From the study, Bock notes that there is not much difference in prices of these 1- and 2-storey dwelling houses held under freehold and leasehold titles. Location, he stresses, is still the most important factor that influences the price of properties.

Echoing similar sentiments is another local property consultant who sees the decision to buy resting mainly on location, accessibility and infrastructure. In the case of the 5-storey walk-up apartments in Wangsa Maju and Setiawangsa, the former being leasehold and the latter freehold, he says, both apartments are commanding average rentals of RM450 to RM500 a month because of their location.

Two-storey 40ft by 80ft semi-detached homes in Bandar Sunway were tagged at RM535,000 in 1994, says the consultant, but during the same period, completed 2-storey terraced houses with almost-similar dimensions in the neighbouring Subang Jaya were transacted at about RM475,000, although the former is leasehold property and the latter freehold.
'If the location is right, the price will be greater, regardless of whether it is a freehold or a leasehold property,' he says. 'And as long as the price and location are right, 'leasehold' will not be the main agenda. 'Freehold' is like an incentive.'

Reference: The Edge Communication

2008年1月15日星期二

Analysis of The Oasis

Advantage:

1. Facilities - Swimming Pool - Marbelous Swimming Pool.

2. Facilities - Multilevel Car Park - Every level has their own entry and exit point. It means that the driver can go directly to their lot without having to circle the floors.

3. Facilities - Multilevel Car Park - Protect from sunshine.

4. Facilities - Jaguzzi - There is a in house Koperasi Jaguzzi in 14th floor of block C. You can enjoy the excellent panorama penang view in the top.

5. Location - Surrounding Locality - Easy access to nearest shop like Tesco, E-Gate and others.

Disadvantage:

1. Tenture of Land - Leasehold - Most buyer prefer Free Hold and unfortunately Oasis is not. This is one of the most important factor to be considered before purchasing. You may facing some difficulties in bank loan and selling the unit in future.

2. Transport - If you drive from the Green Land around about, you made need a big u turn.

3. Facilities - Multilevel Car Park - The selling price is not included car park. For purchasing 2 car park, it is about RM17,000, which is discount price at currently. The normal price for 2 car park is RM30,000. This amount may not able to be included in the loan amount. ( So if i don't buy the car park, is it at the end of the day, the entrance of Oasis will be similar to Putera Place ?)

4. Facilities - Multilevel Car Park - The layout of assigned 2 car park is not "side by side", but is "front and back". It will not convenience for the owner to drive the car at the back. ( Come on! Why got this kind of designed layout?!)

5. Structure - Wall - Cement sand bricks is used, which compare to red brick, the temperature withstand is poor. ( It will be getting hot in these days.)

6. Sales and Purchase Agreement (S&P)- The S&P stated the house unit only occupied 700 square feet, which is not 1100++ as shown on advertisement. The developer only expand the unit accordingly to the layout. ( Feeling not so comfortable ?! ) The reason that the developer do so, so that they can get rid of the responsibility of develop low cost unit. ( Why the developer is like that one ? )

7. Price - By considering to the above factor, then the price of the unit is so not competitive.

Tips:
Be aware and don't attract by the show unit. As the you seen in the show unit, it will be cost about RM100k++ for renovation. If you notice that, the giant mirror is installed in the living room to "enhance the feeling of big space".

2008年1月14日星期一

公積金供屋每月至少提100.第二戶頭擁600可提款

(吉隆坡訊)從2008年1月1日起,在第二戶頭擁有至少600令吉的僱員公積金局會員,都能提取存款償還房屋貸款。

若以此方式償還房貸,會員每月必須至少提出100令吉,且不能少過6個月;此外,提出的款額,也不能超過每月的房貸付款。

公積金局週五(14日)發表文告說,第二戶頭充作償還房貸的存款,不能作其他用途。

“有關會員的年齡必須在55歲以下,同時沒有拖欠任何的房貸。”

首相拿督斯里阿都拉在提呈2008年度財政預算案時公佈每月提出公積金償還房貸的便利。從第二戶頭所提出的存款,將匯入他們的銀行戶頭,以按月攤還房貸。

目前,公積金局會員能提出第二戶頭的存款以建造或購買房屋,以及償還房屋貸款。

除了填寫EPF 9P(AHL)表格之外,首次提出公積金償還房屋貸款的會員還必須呈上身份證正本、銀行存摺正本、房貸餘額信件、房屋買賣合約、房貸批准信、貸款文件和地契。

過後,會員要再次提款的話,他們只需填寫EPF 9P(AHL)表格、身份證副本、銀行存摺副本和房貸餘額信件。

提公積金供屋條件

1.會員必須是購屋者或建屋者,同時是居住單位的房屋或店屋的擁有人。

2.會員必須已擁有由金融機構批准的房貸。

3.有關房屋已被抵押,而金融機構已付清所有款項給發展商。

此便利可用在各種類房屋,條件是每名會員只能為一間房屋申請提款。之前曾申請提款的房屋不受限制;不過,第二次及接下的提款只允許用在同一間房屋。

此類提款只能用在償還房屋貸款,而不能作為其他方面的籌資用途。

每月提款資格可撤銷

公積金局可以在以下情況撤銷會員每月提款和未來所提出的同類提款申請:

1.會員沒有償還金融機構的貸款;

2.貸款被撤銷或已還清;

3.有關房屋已被出售、拍賣或轉手;

4.以偽造文件或資料企圖騙取公積金。

The Essential Stuff In Every House

Foyer:
  1. 鞋 - Shoe
  2. 运动鞋 - Sports Show
  3. 鞋橱 - Shoe Cabinet
  4. 椅子 - Chair
  5. 地毯 - Mat


Living Room:
  1. 沙发 - Sofa
  2. 咖啡桌 - Coffee Table
  3. Side Table
  4. 电话 - Telephone
  5. 电视橱 - TV Cabinet
  6. 窗帘 - Curtain
  7. 电视机 - TV
  8. 地毯 - Mat


Bedroom:
1. Cabinet
2. Mattress
3. Divan
4. Dressing Table
5. Side Table
6. Curtain

Study Room:
1. Table
2. Chair
3. Book Cabinet
4. Pen
5. Pencil
6. Ruler
7. Memo
8. Computer
9. Printer
10. Router
11. Modem

Kitchen:
1. Hood
2. Hop
3. Refrigerator
4. Rice Cooker
5. Kettle
6. Gas Cylinder
7. Basin
8. Electric Water Boiler
9. Match
10. Dishwashing Liquid
11. Dishwashing Plaster
12. Sponge
13.

Laundry Yard:
1. Washing Machine
2. Plastic Clothespins
3. Hanger
4. Mesh Lingerie Wash Bag
5. Washer Shelf

Bathroom:
1. Soap Holder
2. Toothpaste
3. Soap
4. Tooth Brush
5. Mirror
6. Tower Bar
7. Tower Ring
8. Shaver
9. Toilet Paper
10. Tower Rack
11. Brush

2008年1月4日星期五

The Oasis

The Oasis


Main View


Jacuzzi


Wide Jacuzzi


Location:


Interior Design: Master Bedroom


Interior Design: Kitchen


Interior Design: Living & Dining


Interior Design: Master Bedroom



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